A growing number of companies have started to offer digital assets as part of compensation and incentive packages, says BPM Partner Kemp Moyer.
In his contributed article for BenefitsPRO, BPM Partner Kemp Moyer reviews whether cryptocurrency will emerge as a legit incentive in employee benefit packages. Cryptocurrency have become legitimate assets that can be bought, sold, traded and redeemed, and even sovereign countries are using them as legal tender. So given the upward trend, some forward-thinking companies have started using cryptocurrency and digital assets as part of their incentive and compensation packages.
Moyer compares how traditional stock options function versus crypto token-based options, noting the various advantages for companies and employees in offering digital assets. One such advantage: “Companies can still require a vesting period where the employee cannot access the tokens for a set period, similar to stock options,” says Moyer “And, as cryptocurrency valuations grow, this could provide a more significant incentive to stay.”
BPM for Blockchain and Digital Assets
BPM provides the technical advice you need to thrive and navigate through the rapidly changing regulatory landscape of token-based compensation and all matters crypto/blockchain. The professionals in our dedicated Blockchain and Digital Assets Industry Group have extensive knowledge and experience in dealing with tax, accounting and auditing matters, as well as regulatory and compliance issues, including revenue recognition, IT compliance, enterprise risk management, and classification and valuation of digital assets.